Evolution of its cloud partner strategy, along with an emphasis on Cisco Powered branding and simplified partner engagements, are designed to drive more opportunity for the channel, says Arjun Lahiri, senior manager, Worldwide Partner Organization, at Cisco Systems Inc., San Jose, Calif.
Based on feedback from partners, and with a goal of bringing data center infrastructure and cloud into the mainstream of the partner program, Cisco in September introduced the Cisco Master Cloud Builder Specialization, which builds on the Advanced Data Center Architecture Specialization.
“As services flow from partner to end user … we want to make sure the Cisco Powered brand flows through and is visible to users.” Arjun Lahiri, Senior Manager, Worldwide Partner Organization, Cisco Systems Inc.
Previously, Lahiri explains, there was no brand attached to the cloud builder role, just a designation. Partners were looking to elevate the cloud builder designation to a specialization with branding, as well as boost profitability. “Our target is to move high-performing data center partners to become cloud builders; that’s our goal,” he says.
The Master Cloud Builder Specialization also offers incentives, such as additional Value Incentive Program (VIP) rebates and the Teaming Incentive Program and Opportunity Incentive Program discounts. “Our cloud strategy is partner-led and partner-driven. We have been very clear in the market; the offers we bring will be enabled, delivered, and supported through the channel,” Lahiri says.
There are about 137 partners with the designation of cloud builder, and Lahiri says the plan is to move many of them into the master specialization over the next 12 to 18 months. Partners that did not have the cloud builder designation prior to September will have to come in at the specialization level.
In November, Cisco announced the next phase of its cloud partner strategy. The company is merging the Cloud Provider and Cloud Services Reseller roles and the current Managed Services Channel Program into a single Cloud and Managed Services Program (CMSP). All partners are expected to transition to the CMSP by August 2013.
Lahiri says the move is in response to how business models are merging on the provider side, and the feedback Cisco was receiving from partners. “A lot of [partner] companies had managed services – offering service-level agreements, remote monitoring and management, troubleshooting – and a significantly large portion of those companies also participated as cloud providers.”
A Cisco MSP partner that wanted to participate in cloud “shouldn’t have to have new tools and rules,” Lahiri says. A single program to work with Cisco makes sense, he says. “We recognize that cloud and MSP are a continuum, so you may start as an MSP and move to cloud, and others born in the cloud may never do MSP, but it’s one model.”
Also, as of January 27, 2013, CMSP partner discounts are aligned with the Cisco Resale Channel Program certification discount structure and Cisco Powered payments will transition to the Cisco VIP, providing a single payment program for partners.
CMSP partners looking for pricing predictability for their cloud and managed services business can utilize Simplified Pricing. “The [partners] looking for speed, to buy and get into production, like Simplified Pricing,” Lahiri says. “It’s not the deepest discount, but it’s competitive. The goal is to serve different needs. VIP is for more profitability; Simplied Pricing is for speed.”
Another benefit of CMSP, Lahiri says, is the launch of a cloud marketplace that any partner can access to build their storefront, and get access to information and advertising service. “In addition to the high touch they get from Cisco, this is a self-service model, so [partners] can control the information they want to share, how they want to form partnerships, and advertise to end users.”
Going forward, Lahiri says the company plans to expand its portfolio of service offerings. “We will keep a good watch and see what else customers want to consume in a services catalog.”
Also, as part of its cloud partner strategy, the company will be putting more focus on Cisco Powered branding, he says. “As services flow from partner to end user there might be cloud brokers, cloud aggregators, in the middle, and we want to make sure the Cisco Powered brand flows through and is visible to users. It carries the Cisco trademark of assurance [and] high availability.”
The intent is to help partners extend their reach and build out with Cisco Powered branding as a competitive differentiator. Adds Lahiri, “There will be more focus and work from our side to enhance that differentiation.”
